Nvidia and Other Tech Giants Submit AI Risk Reports to SEC to Avoid Litigation Targets

Bloomberg reports that several technology giants, including Microsoft, Google, and Nvidia, have submitted risk reports on artificial intelligence to the U.S. Securities and Exchange Commission (SEC). These reports aim to warn their investors about potential legal actions from shareholders in the event of AI-related issues. Dozens of tech companies have updated their financial disclosures to include warnings about AI-related risks, emphasizing that despite AI’s rapid advancement, regulatory scrutiny or lawsuits could lead to poor financial performance and investor losses. Companies such as Meta, Adobe, Dell, Oracle, and Uber have also submitted similar warnings to the SEC. Specific concerns highlighted include AI’s potential misuse in elections, copyright claims related to AI training and content output, human rights and privacy implications, disruption of labor markets, and potential restrictions on products due to misuse. These companies’ disclosures come amidst ongoing legal actions, such as Microsoft’s litigation with The New York Times over alleged copyright infringement related to OpenAI, which could result in significant financial settlements. Google is also investigating allegations of improper use of YouTube content by OpenAI for product training. The submissions of these risk reports are intended to inform investors about potential issues and preempt shareholder lawsuits in case of investment losses. Companies typically follow industry peers in disclosing risks to avoid becoming targets of shareholder litigation.